ID :
54218
Tue, 04/07/2009 - 11:41
Auther :
Shortlink :
https://www.oananews.org//node/54218
The shortlink copeid
FIRST QUARTER ECONOMIC GROWTH STILL ESTIMATED ABOVE 4 PCT : BI
Jakarta, April 6 (ANTARA) - Bank Indonesia estimates that the country's economic growth in the first quarter of 2009 was still above four percent although it had dropped from the figure for the fourth quarter of 2008.
"It is indeed predicted to drop but not drastically or it will remain above four percent compared with the growth of the fourth quarter of 2008," the central bank's director of economic and monetary research, Made Sukada, said here on Monday.
BI projected the country's economy in 2009 would only grow three to four percent as exports and consumption were predicted to be lower than in the previous period.
He said the country's economic growth would also depend upon a number of variables particularly economic recovery in the developed countries.
It would also depend upon the implementation of fiscal stimulus, he said. "Hopefully the realization of the stimulus plan will be as expected so that the economy would only slow down but not tumble," he added.
Regarding the bilateral swap arrangement with Japan Sukada said that it would all depend upon the government whether it would be used or not.
"If it is really needed it will certainly be withdrawn. What is important is that the umbrella for it is already available," he said.
He said the arrangement would give confidence to all economic and market players. He said Indonesia had not only made the swap arrangement agreement with Japan but also with China.
"China has already been committed but has not yet made it known as it is still under discussion," he said.
He said the swap arrangement agreement would not automatically make the rupiah to appreciate because the rupiah rate was determined by supply and demand.
Asked if overseas funds have been flowing into the country he said that in case a rebound occured in the capital market it was certain that some people would spend some of the investment.
"And so is it if improvment occurs in debentures. There must be spending. Spending is a domestic and foreign combination," he said.
"It is indeed predicted to drop but not drastically or it will remain above four percent compared with the growth of the fourth quarter of 2008," the central bank's director of economic and monetary research, Made Sukada, said here on Monday.
BI projected the country's economy in 2009 would only grow three to four percent as exports and consumption were predicted to be lower than in the previous period.
He said the country's economic growth would also depend upon a number of variables particularly economic recovery in the developed countries.
It would also depend upon the implementation of fiscal stimulus, he said. "Hopefully the realization of the stimulus plan will be as expected so that the economy would only slow down but not tumble," he added.
Regarding the bilateral swap arrangement with Japan Sukada said that it would all depend upon the government whether it would be used or not.
"If it is really needed it will certainly be withdrawn. What is important is that the umbrella for it is already available," he said.
He said the arrangement would give confidence to all economic and market players. He said Indonesia had not only made the swap arrangement agreement with Japan but also with China.
"China has already been committed but has not yet made it known as it is still under discussion," he said.
He said the swap arrangement agreement would not automatically make the rupiah to appreciate because the rupiah rate was determined by supply and demand.
Asked if overseas funds have been flowing into the country he said that in case a rebound occured in the capital market it was certain that some people would spend some of the investment.
"And so is it if improvment occurs in debentures. There must be spending. Spending is a domestic and foreign combination," he said.
